Wash Post: “Retail group's analysis paints dire image of a VAT”

October 14, 2010

ICYMI: The Washington Post’s “Retail group’s analysis paints dire image of a value-added tax

Below is an excerpt; please click on the link above to read the entire article.

Piling a European-style sales tax on top of the existing U.S. tax structure would immediately destroy 850,000 jobs and damage retail spending for years to come, according to an economic analysis commissioned by the National Retail Federation, a leading trade group.

The report studied the potential effect of a 10.3 percent value-added tax, or VAT, a form of sales tax applied at every stage of production. The tax is ubiquitous around the world, having been adopted in more than 130 countries.

NRF president Matthew Shay said the study is intended to push back against what he views as a rising tide of interest in the VAT in Washington, where policymakers are eager to reduce record budget deficits.

“Supporters claim a VAT is the solution to the nation’s economic ills, but nothing could be further from the truth,” said Shay, who represents an industry that has long opposed a value-added tax. “This report has found that a VAT would have negative economic consequences for most working Americans alive today.”

Shay said the NRF will submit the study to the bipartisan commission President Obama has appointed to develop a deficit-reduction plan. The commission is scheduled to issue its report in December. Shay said his group grew nervous about the value-added tax after seeing public comments from commission members, including co-directors Erskine Bowles and Alan Simpson.

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15 Responses to Wash Post: “Retail group's analysis paints dire image of a VAT”

  1. Nancy Geurin says:

    NO VAT. It is a bottomless pit. It becomes hidden. It won’t go away. Deficit can be reduced by reduced spending. Simple. Easy. Do it now.

  2. Nancy Geurin says:

    NO VAT. It is a bottomless pit. It becomes hidden. It won’t go away. Deficit can be reduced by reduced spending. Simple. Easy. Do it now.

  3. Nancy Geurin says:

    NO VAT. It is a bottomless pit. It becomes hidden. It won’t go away. Deficit can be reduced by reduced spending. Simple. Easy. Do it now.

  4. Chris says:

    This summary above excludes three very important points. First, although the VAT would have negative consequences in the near term, this tax would significantly reduce the deficit and would have an overwhelmingly positive long-term impact. The second point is that a VAT would accompany an overhaul of the tax system and would not be implemented on top of our current system. To make the assumption above is reckless. The final note is that the cuts in spending required to accomplish what the VAT would, is comparable to entirely cutting Medicare. Since this website is dedicated to providing information about fiscal responsibility I would expect that it would take care to look at all sides of the issues. Failure to take such an approach will do nothing but fuel the fire of fear and helplessness that many Americans currently have. Please see the full article for relevant information that was carelessly removed by the editor.

  5. Chris says:

    This summary above excludes three very important points. First, although the VAT would have negative consequences in the near term, this tax would significantly reduce the deficit and would have an overwhelmingly positive long-term impact. The second point is that a VAT would accompany an overhaul of the tax system and would not be implemented on top of our current system. To make the assumption above is reckless. The final note is that the cuts in spending required to accomplish what the VAT would, is comparable to entirely cutting Medicare. Since this website is dedicated to providing information about fiscal responsibility I would expect that it would take care to look at all sides of the issues. Failure to take such an approach will do nothing but fuel the fire of fear and helplessness that many Americans currently have. Please see the full article for relevant information that was carelessly removed by the editor.

  6. Chris says:

    This summary above excludes three very important points. First, although the VAT would have negative consequences in the near term, this tax would significantly reduce the deficit and would have an overwhelmingly positive long-term impact. The second point is that a VAT would accompany an overhaul of the tax system and would not be implemented on top of our current system. To make the assumption above is reckless. The final note is that the cuts in spending required to accomplish what the VAT would, is comparable to entirely cutting Medicare. Since this website is dedicated to providing information about fiscal responsibility I would expect that it would take care to look at all sides of the issues. Failure to take such an approach will do nothing but fuel the fire of fear and helplessness that many Americans currently have. Please see the full article for relevant information that was carelessly removed by the editor.

  7. Chris A. says:

    Why should we believe that this government would overhaul our tax code before implementing the VAT. Our tax code is continually added to but we never hear of significant change. We should get rid of the tax code all together and have a flat tax for all so that we all pay the same amount. That way the government can not keep up their class warfare which they constantly berate us with. The “rich” or “poor” all have to pay taxes and we pay the same amount. I am in the military and can tell you from experience that more regulation does not help we are costantly hamstringed by it. Luckily we know our job and get it done no matter the obstacles they set for us.

  8. Chris A. says:

    Why should we believe that this government would overhaul our tax code before implementing the VAT. Our tax code is continually added to but we never hear of significant change. We should get rid of the tax code all together and have a flat tax for all so that we all pay the same amount. That way the government can not keep up their class warfare which they constantly berate us with. The “rich” or “poor” all have to pay taxes and we pay the same amount. I am in the military and can tell you from experience that more regulation does not help we are costantly hamstringed by it. Luckily we know our job and get it done no matter the obstacles they set for us.

  9. Chris A. says:

    Why should we believe that this government would overhaul our tax code before implementing the VAT. Our tax code is continually added to but we never hear of significant change. We should get rid of the tax code all together and have a flat tax for all so that we all pay the same amount. That way the government can not keep up their class warfare which they constantly berate us with. The “rich” or “poor” all have to pay taxes and we pay the same amount. I am in the military and can tell you from experience that more regulation does not help we are costantly hamstringed by it. Luckily we know our job and get it done no matter the obstacles they set for us.

  10. Jeremy says:

    We are already paying a tax on our own currency! Because our own government doesn’t own the rights to print or regulate it. The FED is a private Bank. And as such most of the current taxes collected go to pay the interest uncured by the printing of new money to the FED! New Taxes will not fix anything. What we need to do is find people who are willing to take back this country from the FED!

  11. Jeremy says:

    We are already paying a tax on our own currency! Because our own government doesn’t own the rights to print or regulate it. The FED is a private Bank. And as such most of the current taxes collected go to pay the interest uncured by the printing of new money to the FED! New Taxes will not fix anything. What we need to do is find people who are willing to take back this country from the FED!

  12. Jeremy says:

    We are already paying a tax on our own currency! Because our own government doesn’t own the rights to print or regulate it. The FED is a private Bank. And as such most of the current taxes collected go to pay the interest uncured by the printing of new money to the FED! New Taxes will not fix anything. What we need to do is find people who are willing to take back this country from the FED!

  13. Nolan Crudwick says:

    I’ve always thought that the VAT would basically REPLACE the current tax structure–not supplement it. Was I way off base?

  14. Nolan Crudwick says:

    I’ve always thought that the VAT would basically REPLACE the current tax structure–not supplement it. Was I way off base?

  15. Nolan Crudwick says:

    I’ve always thought that the VAT would basically REPLACE the current tax structure–not supplement it. Was I way off base?

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